Better-than-expected quarterly earnings and revenue at Lowe's on Wednesday could be a turning point for the home improvement company that has lived for years in the shadow of Home Depot, according to Oppenheimer retail analyst Brian Nagel.

As the stock soared before Wednesday's opening bell, Nagel said he sees "big turnaround potential" for a company and a stock, which have "lagged for years." Shares of Lowe's were up 10% early Wednesday afternoon, trading about $107.

In a "dream the dream scenario," Nagel calculated that Lowe's stock could see $180 per share. That would represent an almost 84% increase from where it closed Tuesday at about $98 per share.

"If I model this out, there's more than $10 in earnings-per-share at Lowe's. You put an 18 [times] multiple on that," Nagel said on CNBC's "Squawk Box." However, he said his official price target for Lowe's is $135 per share.

"It seems under the guidance of the new CEO, Lowe's is getting its act together — and frankly, if we're right here and this continues, this stock has a long way to run," Nagel said.

However, he said investors don't have to choose between Lowe's and Home Depot.

"Home Depot [is] a very quality company; under-valued stock even with yesterday's bounce. Lowe's [is a] turnaround opportunity," he said. "Two different types of investment vehicles, but I don't think you'd be hurt owning them both here."

Home Depot shares surged 4.4% on Tuesday after the company beat estimates with second-quarter earnings.

However, revenue did fall short of expectations, and the company lowered its sales outlook for the year on concerns about the U.S.-China trade war slowing consumer spending.